Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
+ x, K1 O( v5 [9 r( wexpect much from Crude Oil producers and future is not with the
* Q9 M7 v7 p: `8 E' f8 o) ]- }3 scompanies producing Jet fuels but Biofuels. Also no wonder if some of
( R9 b1 x0 t% gthese oil producer will go bankrupt or out of the business even if
$ O  ~1 e$ }1 A! E) ~crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
  {+ \0 q* j, @  t) \months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

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2 u: N5 ]6 f8 X3 k8 L1. New oil has been found in Canada, Montana, North & South Dakota and
% d# e/ Y8 s  m* p  iin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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$ y2 |7 ~0 t+ M6 Y2 Z0 z# m# Q2. New natural gas has been found in Pennsylvania and West Virginia.
# ~7 F4 F3 {! k' G8 G. RThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
: _8 r+ _& d. R$ O+ N2 N, W2 Dbeing used to double their output.
6 V) D- E' V7 R3 C% H

: P0 h' }; a2 \/ X+ O4. Production of bio-fuels is beginning to reach critical mass. Bio
7 f# T, a/ }; }& ~5 {9 @# B4 ufuel is being produced from many plants and algae. The production
  H$ |7 x% G; _& zpotential per acre in some cases is astounding. Many countries are
+ a" D+ e: N: `' O% [) N/ G1 U4 Aracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
: Q- @/ X: L6 x# B' Q$ F6 }8 \are now selling their used oil to bio-diesel producers. Every pork,
9 X% s3 O( \9 E3 Zcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
$ m; M4 @$ c+ c( p5 Zproducing 30,000 gallons of bio-diesel per day from pork fat.
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& N: Y8 D0 r" T. Q0 Z% ^6. There are 99 nuclear reactors in various stages of planning and
; L3 g; V8 }( U: ]6 ~construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.

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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
2 |! }2 c, @  m: w6 pwith new more fuel efficient equipment. Airlines and railway companies
5 C% Y  t3 q) @  r( S: ~are experiencing 20% to 25% better fuel econony with the new
2 D9 k' e: o; w, L6 eequipment.
8 S  Z0 ^3 g) O! {* y

Airlines are flying airplanes with bio-fuel. They are finding the bio-
+ n' I/ [* O: O, Gfuel is cleaner and performs better than jet fuel.

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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
3 H$ n( P. s3 Poil.


) H* @/ B! Z& S( B1 a+ p9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
+ U3 m/ B+ @6 U5 h' Noil wells.
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4 }8 u0 e: ]+ X- c; i10. Solar, wind and ocean energy is displacing oil as an energy
; x9 r' f0 Y6 s# V7 F" @source. Three new wind turbines are being erected every day in the US.
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$ a1 }1 w1 I9 W6 _) W- ^Each of the above by itself will not make a large difference in the
% b0 |( I7 `, @" qprice of crude oil but the sum of all of them together is world
2 P5 ]: D4 ~5 K9 N% z5 \changing. The important thing is that OPEC no longer has the ability
to control oil prices.
2 w$ q+ @, `7 f' a! X

With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
+ {. k# z8 W* ^value .....
* J* l" _: A4 r- G/ g5 mIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
+ P4 V% M9 O, Y. f: T1 N+ |+ [

8 N  b* l; B0 `The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only